Freehold African Mahogany Plantations

The companies involved in this project (Agrolife, Terra Quente and Birchwood Stanhope) are Brazilian companies lead by European and UK entrepreneurs, fully dedicated to sustainable and profitable agricultural projects on North and Northeast Brazil, based on prime soils, excellent locations and state of the art technologies.

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The main production systems that we grow are prime hardwood forests (Teak, Mahogany, Guanandi and Neem), starch (cassava flour), corn and soy.

Clients can be a part of our forestry project, by acquiring 1.000 trees professionally implanted on one hectare of prime soil, with the purpose of producing valuable hardwood boards, delivered turn-key without maintenance fees.”

For each wood type, the projected ROI will be showed on a table chronogram, based on an initial (and unique) investment of 20,000 usd. The contract terms (to be registered at the notary office that also registers the land titles) clearly specifies the developer´s responsibility: to implant 1.000 trees per hectare, maintain, harvest and process them into boards. The conservative expectation is to obtain at least 150m3 of sawn boards per each hectare (with 1.000 trees) to be sold at the total amount of 150,000 usd. The cost to maintain, then process and finally sell amounts to 50.000 usd, which will be deducted from the expected hardwood gross sale. The expected conservative result is to deliver 100.000 usd of net sales profit to the client (no income taxes considered).”

The project points directly to the increasing demand, both in Brazil and abroad, for prime HARDWOOD BOARDS (Mahogany, Guanandi, Cedar and Teak) and CASSAVA FLOUR (the newest in-fashion food: gluten free for weight control diets and with high glycemic level for athletes).

The opportunity to be a part of our projects is offered to INVESTORS with different investing profiles, from private equity to closed funds, aiming to buy into safe Land, Wood & Food investments with IRR higher than 10%, high liquidity (by selling into other investors at any time) and secure longevity (for investors who prefer a longer term).

SUMMARY
Project funding has been coming from 3 main sources:

1st) the initial capital came from our own equity: we searched for the best land in Brazil and bought it with our own equity and thus becoming an asset in our valuable portfolio; 

2nd) in the second phase, capital is being obtained through Brazilian bank funding (low carbon agriculture funding granted by the 3 main developing banks in Brazil: Banco do Brasil, Banco do Nordeste do Brasil and Caixa Económica Federal); 

3rd) currently the forest implementation has started, we seek to bring aboard a few investing partners (private equity, closed funds…) that can join us throughout the entire project.

We are located at the newest and most promising Brazilian agricultural frontier: MATOPIBA (an acronym for the northeast states of Maranhão, Tocantins, Piauí and Bahia). Our farms are in Bahia, the most developed state in this region.

The route to markets is ensured by main paved roads (BR 235 and PI 144) into high standard exporting ports: Itaqui Port in Maranhão, Pecém Port in Ceará, Suape Port in Pernambuco and Salvador Port in Bahia. We are also in close range to several prime international airports (São Raimundo Nonato, Petrolina, Teresina; Fortaleza, Salvador, São Luís…) and railways (Transnordestina and Ferrovia Norte Sul)

Modern and affordable state of the art procedures are brought by Brazilian institutions and companies: Futuro Florestal (São Paulo) provides genetically proved tree seeds; Agroplan/Embrapa (Ceará) turns them into prime forest seedlings; GLJ Ambiental (Pernambuco/Bahia) engineering ensures that the trees are planted according to high technological and sustainable standards; EMBRAPA Cruz das Almas (Bahia) delivers cassava crop guidance and technology for flour industries… along with our own agronomists and farm managers.

In Petrolina (Pernambuco), the largest irrigated compound in Brazil, we exchange knowledge with other professional farmers that share our vision… liaising with several Federal Universities and Technological Institutes for consultation and partnership.

STRATEGY
Agrolife, Terra Quente and Birchwood Stanhope are fully registered Brazilian companies operating in North and Northeast Brazil since 2003. The owners and administrators have double citizenship (European and Brazilian) and can operate in Brazil, Europe and UK, like any native citizen.

All the farms have solid 100% secure documentation: approved by INCRA (The Brazilian official institute that regulates rural land certification) and registered in the Notary official books (known as “Livro 2”, the only official book that holds/grants legitimate land titles).

We will have, within 2 years, 2.000 hectares of hardwood forests and sawmills: 1.000 hectares of or own and other similar 1.000 hectares sold turn-key to third parties. This way, we will operate similarly to a closed fund, with high liquidity and sustainable fair profits.

Alongside, and to assure cash-flow from the second year on, we are developing 3.000 hectares of cassava plantations, on a short rotation yearly cycle that will produce, through our own agroindustry facilities, approximately 15-20.000 tons of cassava flour per year, to be sold (like the hardwood boards) in local and export markets.

Up until now, the company has completed all land acquisition and obtained all the legal property registrations and certificates: Agrolife alone has, in total, approximately 24,500 hectares in Bahia, Northeast Brazil. Total area in that compound adds to more than 54,000 hectares. 

Project implementation is already in progress: 25,000 tree seeds have been acquired from Futuro Florestal (SP), prepared (as seedlings) in Agroplan (CE) nursery, transported into Bahia… and are already (as of October) being planted in our Bahia farms. 

Professional marketing and state of the art digital interfaces are also being prepared.

THE NEXT STEP
At this moment, the company is welcoming seed investors to come aboard and continue to develop the project with us: we are selling 1,070 hectares, which is all of Fazenda Agrolife V (1,000 hectares in total).

Fazenda Agrolife V will be the launching of our forest projects… aiming to develop, within 2 years, up to 2,000 hectares of forests to be processed in or own sawmills.
Aiming to implement 100 hectares of Forests in Fazenda Agrolife V, by March 2018, we will sell it turn-key to private investors with prices ranging from € 10,000 up to € 15,000 per hectare.

Being ‘ahead of the curve’ rewards early adopters. It allows them to participate once the concept has been proved, on what are usually highly attractive terms, way ahead of the majority of their peers or the population at large. Yet the value peak only starts near its apex, underplaying how long it took to reach that position and showing how the period of maximum value is relatively short compared to that of the tail.

Review the financial information of this investment

If gross sales per hectare (or 1.000 trees processed and sold) surpass, as expected, 150.000 USD… only 50.000 USD will be deducted, as mentioned for expenses… and the rest (gross sales higher than 150.000 USD minus 50.000 USD) will be delivered to the client

At Birchwood Stanhope, it’s important to us you have a fundamental understanding of what you are investing in. This is an offer to you, via Birchwood Stanhope to Co-Invest directly with the owner/operators of the plantations in Brazil.

We strongly recommend that you seek appropriate professional advice before entering into any contract. Values detailed in any report are not guaranteed and are subject to change. Projections in any presentation are approximate and based on the criteria specified which may or may not turn out to be accurate. The value of any investments can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances if might be difficult to sell at any price. Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the Financial Conduct Authority or covered by the Financial Services Compensation Scheme, you will not have access to the Financial Ombudsman Service. 

The content of this website is offered as information only and not to be construed as advice. Birchwood Stanhope Ltda does not provide investment or financial advice, which can only be provided by a regulated financial advisor. Some of the investments outlined on this website are restricted to certain categories of investor. For these investments it will be necessary for the investor to be categorised prior to the release of any further information.

  • Category

    African Mahogany - Khaya senegalensis
  • Available Hectares (Phase 1)

    1,070
  • Plantation GPV (phase1 - 1,070 hectares)

    $85,600,000
  • Investment Time Scale

    36 Months +
  • Investment Location

    Bahia, NE Brazil
  • Price per hectare

    US$20,000
  • Ownership

    Shareholder (JV in SPV) or Freeholder
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